Financial Analysis and Computations 

PLEASE READ THE INSTRUCTIONS AND RUBRIC CAREFULLY so that you can have a complete grasp of this assignment. You will be completing PART 3 of this assignment ONLY and it involves a write up and computations to be completed in an excel spreadsheet. The writing portion of this assignment doesn’t have a specific number of pages that is required. Four to five pages is sufficient. I added additional pages to the description to accommodate the excel work that must accompany the writing. I have uploaded part 1 and part 2 of the assignment for your reference as well as an excel template that may or may not help. I received an A- on part 1 and an F on part 2.  This was the feedback I received for part 1 and 2 of this assignment. Instructor feedback Part 1: “good work here, IPO and duties sections were excellent. You did not indicate where to acquire the investment choices and you did not mention any specific federal safeguards – SEC, SOX, FAS, GAO, GAAP, FDIC.” Grade was A- Instructor feedback Part 2: Grade F – “The financials looked good, as did the ratios for Coke but you did not provide financial statements and all the ratios for Pepsi(just 2 of the required ratios were submitted). you submitted one year returns, not 3 year returns. You did not provide industry averages. You did not do any written analysis of Pepsi or comparing Pepsi to Coke in a written format. You did not provide information, as to if each was a growth or value company, which are specific types of companies. Your analysis of Coke was only focused on cash flow and no other financials.” Grade was F HERE ARE SOME HELPFUL HINTS FOR COMPLETING THE WRITE UP PORTION OF THIS ASSIGNMENTS.  I. School Versus Work A. The school you would like to attend costs $100,000. To help finance your education, you need to choose whether or not to sell any of your 500 shares of Apple stock you bought five years ago, 100 Apple Bonds (3.25% coupon rate) that are five years from their 10-year maturity date, or a combination of both. Provide the appropriate data and calculations that you would perform to make this decision. You need to figure out how to finance your education. You will need to look up the current market value of Apple Stock and you own 500 shares of the stock.  Do you want to sell this investment or a part of the investment to help pay for your $100,000 school bill?  Why or why not?  In addition, you own 100 Apple Bonds (each with a $1,000 face value and a 3.25% coupon rate) that are five years from their 10-year maturity date. Do you want to cash in all or part of these bonds to help finance your education? Why or why not? B. What are the advantages and disadvantages of selling a combination of stocks and bonds? Be sure to support your answers. C. Suppose that you choose to sell your stocks, bonds, or a combination of both. What is your choice, and what is your financial reasoning behind this choice? Consider supporting your answer with quantitative data. D. Suppose that you choose to accept the job. What is your financial reasoning behind this choice? Be sure to support your answer with quantitative data. Things to consider: If you do not want to sell your Apple investments or any part of the stock or any of the bonds, you will not be able to go to school right away and you will probably want to accept the job to earn money to help pay for school. Or, if you decide to finance your education, with your investment money, maybe you don’t accept the job, pay and concentrate on your education and get a different job after school.

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